Capital Loss carry over

Godzilla

If I have more than 3,000 capital loss carry over from the previous year, plus I have few more thousands this year, how much can I use against the capital gain ordinary income?

MatthewD

Hi Godzilla,

You can use the capital loss carryover up to the amount of capital gain you have in the current year, plus an additional $3,000 loss.

For example, let's say you have $45,000 of capital gain loss carryover from prior years. In 2024 you have $35,000 capital gains. You can use $35,000 of the carryover loss, plus another $3,000, and have $7,000 to carry over to 2025. The loss completely wipes out the $35,000 capital gain for 2024.